Commissioner Dr Kate Brown said that the Commerce Commission received on Friday an application from TransAlta NZ Limited for clearance to acquire 40 percent of Contact Energy Limited.

All bidders for the cornerstone shareholding in Contact, with existing interests in New Zealand electricity or gas markets, are required by the Government to apply for Commission clearance.

TransAlta is a listed company that retails electricity in Auckland, Wellington, Nelson and Christchurch. It also generates electricity, retails natural gas and owns some natural gas distribution assets.

Contact is a State Owned Enterprise that generates, wholesales and retails electricity and wholesales and retails natural gas. It has interests throughout New Zealand and also in Australia.

The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets. Parties can apply for clearance, which will be granted if the Commission is satisfied that dominance is not acquired or strengthened.

The Commission must determine the relevant markets and then assess what impact the proposed acquisition would have on competition in those markets.

A clearance, if granted, protects an acquisition from court action under the Act.

Public copies of the application are available from reception at the Commission's Wellington office, level 7, Landcorp House, 101 Lambton Quay.

Media contact: Commerce Act Manager Geoff Thorn

Phone work (04) 498 0958

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz